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Technology
India's IT sector expected to post muted Q2 growth due to pricing pressure
✍️ newsable.asianetnews.com
🗓 04 Oct 2026, 09:46 AM
👁 9
Analysts project modest growth for India's information technology services in the second quarter, citing sustained pricing pressure from overseas clients.
A recent industry report indicates that India's information technology sector is likely to record only modest expansion in the second quarter of the fiscal year.
The slowdown is attributed to continued pricing pressure as global clients seek cost reductions amid uncertain economic conditions. While demand for software services remains robust, firms are compelled to negotiate lower rates, which dampens revenue growth.
Analysts caution that the sector's performance will hinge on how quickly pricing dynamics stabilise and whether new contracts can offset the margin squeeze.
The slowdown is attributed to continued pricing pressure as global clients seek cost reductions amid uncertain economic conditions. While demand for software services remains robust, firms are compelled to negotiate lower rates, which dampens revenue growth.
Analysts caution that the sector's performance will hinge on how quickly pricing dynamics stabilise and whether new contracts can offset the margin squeeze.